European shares rise as Syria standoff worries recede

MILAN/LONDON (Reuters) - European shares rose on Thursday alongside a relief rally across global markets after U.S. President Trump signaled that military strikes in Syria may not be imminent.

The DAX (German stock index) logo is seen at the stock exchange in Frankfurt, Germany, March 23, 2018. REUTERS/Kai Pfaffenbach

The pan-European STOXX 600 index closed up 0.7 percent after a negative start as sentiment improved during the day and Wall Street bounced higher with an easing of nerves over a confrontation between the U.S. and Russia in Syria.

Trump toned down his threats of a swift military strike on Syria, tweeting “Never said when an attack on Syria would take place. Could be very soon or not so soon at all!”.

Shares in Sulzer (SUN.S) rallied 19.5 percent after the Swiss pumpmaker said it freed itself of U.S. sanctions after authorities approved its buyback of shares that has reduced to less than 50 percent the stake of Russian oligarch Viktor Vekselberg, chairman of holding company Renova.

The relief bounce however made up for only part of the 22 percent share price drop Sulzer suffered since the sanctions were announced last week, as some investors remained cautious.

“The fact that renewed sanctions could be imposed at a future point in time cannot be ruled out,” Zuercher Kantonalbank analyst Armin Rechberger said in a note.